Goldman Sachs Named ‘Stabilization Agent’ for Alibaba Stock Offering

Telis Demos broke the news that Alibaba Group Holding Ltd. had selected Goldman Sachs Group Inc. for the role of “stabilization agent” in Alibaba’s upcoming initial public offering, according to sources. As “stablization agent,” Goldman will be in charge of overseeing the deal’s early share trading.

The story as it appeared on Dow Jones:
Sept. 3, 2014, 5:18 PM EDT: Goldman Sachs Named ‘Stabilization Agent’ for Alibaba IPO – Sources

5:19 PM EDT: Goldman, as ‘Stabilization Agent,’ Will Play Key Role in Early Alibaba Trading — Sources

Goldman Sachs Group Inc. has landed a key role in Alibaba Group Holding Ltd.’s upcoming initial public offering as the bank in charge of overseeing the deal’s early share trading, people familiar with the matter said.

The role, known as “stabilization agent,” was coveted among the six banks currently working on Alibaba’s IPO because of the prestige and potential additional fees and trading commissions that could be generated from overseeing the trading, the people said.

However, it wasn’t yet clear whether Goldman would receive a larger portion of the fee pool from the deal, as other banks will also have designated roles in the deal, one of the people said. That issue is still to be decided, the person added.

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